Global Stocks Rise as U.S., Mexico Near Trade Deal
Aug 28 2018 by Cristina Jennings
Some lawmakers have said that a bilateral deal would face a higher vote threshold in Congress because the NAFTA fast-track negotiating authority law calls for a trilateral agreement. The negotiations were "difficult" at times, Peña Nieto said, but added that the new framework would boost productivity in North America. But as the Oval Office pushback showed, there are more reasons than usual to be skeptical of Trump's sales pitch on the new free trade agreement.
"We had a NAFTA agreement that had gotten out of whack, that needed updating and modernizing", said U.S. Trade Representative Robert Lighthizer in a call with reporters.
Some experts interpreted the administration's signaling about a possible bilateral deal as an attempt to pressure Canada into a swift agreement on revising NAFTA, which the U.S. administration denied. While emerging markets, including China have fallen into bear market territory, the record USA bull market presses onwards.
"This is something very positive for the United States and Mexico", Pena Nieto replied, saying he is looking forward to toasting Trump with tequila to celebrate, expressing to his American counterpart that he is "really grateful and greatly recognize and acknowledge your political will in all of this". This is especially true of Germany, one of the world's most export-dependent major economies. Mexico and the United States have reached a commercial understanding. "So if they had to compromise on energy, so be it".
Automobile stocks soared and financial markets firmed on the expectation that Canada would sign on to the deal by the end of the week and ease the economic uncertainty caused by Mr Trump's repeated threats that he would ditch the 1994 accord.
Analysts said it won't be easy to simply shut the door on the Canadians. (The Administration said Monday that it believes that it has met its legal requirement).
President Donald Trump wants to sign a new trade agreement with Mexico and toss the name "NAFTA" into the dustbin of history.
Mexican President Enrique Pena Nieto was patched in by phone, calling the deal "very positive" for both the USA and Mexico.
Further, the statement went on to say that the two leaders will engage this week "with a view to successful conclusion of the negotiations".
Trudeau has insisted his government will only sign a deal that's good for Canada.
"The new deal has many problems, however, not least that it excludes Canada", the editorial read. "U.S".
Can Canada, the third member country in NAFTA and America's No. 2 trading partner, be coaxed or coerced into a new pact? He noted, for example, that Trump said nothing Monday about dropping Trump's tariffs on Mexican or Canadian steel - tariffs that were imposed in part to pressure those countries to reach an agreement on NAFTA. She will start talks on Tuesday on the revised pact in Washington.
Trump also wants to re-baptize the trade agreement with Mexico. "That said, it does seem like there are still a few hurdles to clear first, and in particular the deal's path through Congress".
The Trump administration will now work in partnership with Mexico to bring Canada to the table for a new and potentially separate deal.
Some of the state's largest companies are expanding across the border too.
Toughen rules for textile supply chains to push countries toward producing more apparel domestically. That would penalize vehicle companies that set up low-wage plants in Mexico, but it's the kind of change that requires adjustment, not a revolution in the auto industry.
Trump has frequently condemned the 24-year-old NAFTA trade pact as a job-killing "disaster" for American workers.
That measure could move some production back to the United States from Mexico and should lift Mexican wages, the White House official said. He threatened tariffs on autos imported from Canada as another way to keep up pressure.